CALGARY - The proposed development of the multi-million dollar Stampede Trail retail and entertainment district, along Olympic Way S.E, has hit another major roadblock.

The Calgary Stampede had been working with Denver-based Alberta Development Partners since 2007 on the project which was destined for the blocks between 12th Avenue S.E. and the entrance to Stampede Park, but recently it concluded negotiations with the developer after both parties could not agree on how to move forward on the development, the Herald has learned.

The Stampede, however, continues to keep Stampede Trail as an important piece of its Master Plan, which is a vision for a year-round gathering place, that complements its Agrium Western Event Centre, Riverfront Park and Youth Campus developments. In an email to volunteers, Vern Kimball, chief executive of the organization, said it’s “not a question of if Stampede Trail will be developed, but rather when it will be developed.”

Warren Connell, vice-president of park development for the Calgary Stampede, confirmed ADP is no longer part of the proposed development which was intended to have a western heritage retail component and a gathering place to bind the other pieces of Stampede Park together.

Initially, the development involved the Stampede leasing the land on a long-term basis.

“Meaning the Stampede would be landlord, not a development partner in the deal,” said Connell. “Alberta Development Partners had the lease to develop Stampede Trail and then they would be for all intents and purposes the owner of the actual development.”

But Connell said ADP had difficulty getting financing on a lease deal and the developer approached the Stampede to see if the organization would consider a joint venture arrangement where it would partner with the developer to develop Stampede Trail.

“That would have changed us from being a landlord to actually being an investment partner,” said Connell. “That would be a unique, new approach for the Stampede. As a not-for-profit, we’re very risk averse.”

The Stampede hired industry experts to help it understand the risk profile in the proposal from ADP. A list of risk items were identified that the Stampede wanted to address as part of the negotiations. From December of last year until just recently, negotiations continued on the joint venture proposal. But last week those negotiations ended.

“The Stampede will be doing a re-set,” said Connell. “There’s been a lot of changes in the economy. There’s been a lot of changes in our overall master plan development that I think we need to take a look at and see how that relates to Stampede Trail. I think it’s all positive. The Beltline has developed slower than we anticipated but certainly in seven years it’s developed significantly compared to the way it was.

“Over and above that, though, the Stampede has been very successful at its other development opportunities as far as the Youth Campus, Riverfront Park and the Agrium building go. So we think the landscape of the Stampede will be significantly different in three years time.”

Connell said the Stampede is appreciative of all the time and work ADP put into the Stampede Trail project “and certainly would not proclude ADP from being a part of a future process. There’s no bad feelings at all. They’re a very reputable developer that’s been very successful all across North America.”

Officials at ADP could not be reached for comment on Tuesday. But on its website, it describes the Stampede Trail project as where Western meets modern with 150,000 square feet of retail development, 100,000 square feet of office space and a 300-room hotel.

“The mixed-use development will provide daily shopping, dining, socializing, learning, entertaining and hospitality experiences that can be enjoyed by visitors of all ages and will build on the high-level of activity that occurs at Stampede Park annually. Stampede Trail will preserve and advance the Calgary Stampede’s western heritage and values,” said the company’s website.

“Grand amenities will create a procession of activity all along Stampede Trail and will include a fire pit, architectural monuments, chiming carillon bells, a dramatic sculpture fountain, a plaza for gathering and majestic entry gateways.”

In July 2009, officials announced that Jimmy Buffett’s Margaritaville restaurant would open in time for the 100-year anniversary of the Calgary Stampede in 2012 as the anchor tenant in the new Stampede Trail in the $170-million development. But later it was no longer part of the plans.

“The Stampede Trail will be an integral part of the Stampede Park experience. It’s not a matter of if it will built but when it will be built,” said Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate in Calgary. “It has the potential to be a retail and foodservice showpiece for the park and it will integrate nicely into the evolving and adjacent environment in Victoria Park and East Village.

“It’s important that the Calgary Stampede take their time and execute the development of Stampede Trail in an efficient and professional manner.”

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